Horngren's Accounting (12th Edition)
12th Edition
ISBN: 9780134486444
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 21, Problem P21.68CT
Using Excel for cost-volume-profit(CVP) analysis
Download an Excel template for this problem online in MyAccountingLab or athttp:www.pearsonhighered.com/Horngren.
The Oceanside Garden Nursery buys flowering plants in four-inch pots for $1.00 each and sells them for $2.50 each. Management budgets monthly fixed costs of $2,100 for sales volumes between 0 and 5,000 plants.
Requirements
1. Use the contribution margin approach to compute the company's monthly breakeven point in units.
2. Use the contribution margin ratio approach to compute the breakeven point in sales dollars.
3. Use the contribution margin approach to compute the monthly sales level (in units) required to earn a target operating income of $5,000.
4. Prepare a graph of the company's CVP relationships. Include the sales revenue line, the fixed cost line, and the total cost line. Create a chart title and label the axes.
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Using Excel for cost-volume-profit (CVP) analysis
Download an Excel temp/ate for this problem online in MyAccountingLab or at
http://www.pearsonhigheredcom/Horngren.
The Oceanside Garden Nursery buys flowering plants in tour-inch pots for $1.00 each and sells them for $2.50 each. Management budgets monthly fixed costs of $2,100 for sales volumes between 0 and 5,000 plants. Requirements
Use the contribution margin approach to compute the company’s monthly breakeven point in units.
Use the contribution margin ratio approach to compute the breakeven point in sales dollars.
Use the contribution margin approach to compute the monthly sales level (in units) required to earn a target operating income of $5,000.
Prepare a graph of the company’s CVP relationships. Include the sales revenue line, the fixed cost line, and the total cost line. Create a chart title and label the axes.
Elmwood Pinecone sells fake Christmas trees with a selling price of $75 and variable costs per unit of $30. The company’s monthly fixed expenses are $22,500.
NOTE: You may want to use one of the EXCEL spreadsheets I provided in the module - Chapter03 CM Income Statement.xlsx downloador Chapter03 CM Income Statement BE.xlsx download - to help complete this problem.
The following names are to be considered when completing this problem:
Operating Income
Variable Costs
Sales
Fixed Costs per Unit
Selling Price per Unit
Variable Cost per Unit
Contribution Margin
Fixed Costs
Operating Loss
What is the Elmwood’s break-even point in units? . Use commas as needed (i.e. 1,234).
What is the Elmwood’s break-even point in dollars? . Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345).
Using the names listed above, construct a contribution margin income statement for the month of November when they will sell 900 units. Rounded to whole dollars and…
Elmwood Pinecone sells fake Christmas trees with a selling price of $75 and variable costs per unit of $30. The company’s monthly fixed expenses are $22,500.
NOTE: You may want to use one of the EXCEL spreadsheets I provided in the module - Chapter03 CM Income Statement.xlsx download or Chapter03 CM Income Statement BE.xlsx download - to help complete this problem.
The following names are to be considered when completing this problem:
Operating Income
Variable Costs
Sales
Fixed Costs per Unit
Selling Price per Unit
Variable Cost per Unit
Contribution Margin
Fixed Costs
Operating Loss
How many trees will Elmwood need to sell in order to realize a target profit of $45,000? . Use commas as needed (i.e. 1,234).
What dollar sales will Elmwood need to generate in order to realize a target profit of $45,000? . Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345).
Construct a contribution margin income statement for the month of December that…
Chapter 21 Solutions
Horngren's Accounting (12th Edition)
Ch. 21 - For Frank’s Funky Sounds, straight-line...Ch. 21 - Prob. 2QCCh. 21 - Prob. 3QCCh. 21 - Prob. 4QCCh. 21 - Prob. 5QCCh. 21 - On a CVP graph, the total cost line intersects the...Ch. 21 - If a company increases its sales price per unit...Ch. 21 - Prob. 8QCCh. 21 - Prob. 9QCCh. 21 - Prob. 10QC
Ch. 21 - Donovan Company incurred the following costs while...Ch. 21 - Prob. 12AQCCh. 21 - Prob. 1RQCh. 21 - Prob. 2RQCh. 21 - What is a mixed cost? Give an example.Ch. 21 - What is the purpose of using the high-low method?Ch. 21 - Describe the three steps of the high-low method.Ch. 21 - What is the relevant range?Ch. 21 - A chain of convenience stores has one manager per...Ch. 21 - A chain of convenience stores has one manager per...Ch. 21 - Prob. 9RQCh. 21 - Prob. 10RQCh. 21 - Prob. 11RQCh. 21 - What is cost-volume-profit analysis?Ch. 21 - Prob. 13RQCh. 21 - Prob. 14RQCh. 21 - Prob. 15RQCh. 21 - Of the three approaches to calculate sales...Ch. 21 - Prob. 17RQCh. 21 - Prob. 18RQCh. 21 - On the CVP graph, where is the breakeven point...Ch. 21 - What is sensitivity analysis? How do managers use...Ch. 21 - Prob. 21RQCh. 21 - What is cost stickiness? Why do managers need to...Ch. 21 - Prob. 23RQCh. 21 - What is a company's cost structure? How can cost...Ch. 21 - What is operating leverage? What does it mean if a...Ch. 21 - Prob. 26RQCh. 21 - What is absorption costing?Ch. 21 - What is variable costing?Ch. 21 - How are absorption costing and variable costing...Ch. 21 - When units produced equal units sold, how does...Ch. 21 - Prob. 31ARQCh. 21 - Prob. 32ARQCh. 21 - Identifying variable, fixed, and mixed costs...Ch. 21 - Prob. S21.2SECh. 21 - Using the high-low method Learning Objective 1...Ch. 21 - Prob. S21.4SECh. 21 - Prob. S21.5SECh. 21 - Prob. S21.6SECh. 21 - Prob. S21.7SECh. 21 - Computing contribution margin, units and required...Ch. 21 - Prob. S21.9SECh. 21 - Prob. S21.10SECh. 21 - Prob. S21.11SECh. 21 - Use the following information to complete Short...Ch. 21 - Use the following information to complete Short...Ch. 21 - Prob. S21.14SECh. 21 - Prob. S21.15SECh. 21 - Prob. S21.16SECh. 21 - Prob. S21.17SECh. 21 - S21A-18 Classifying costs
Learning Objective 6...Ch. 21 - Use the following information for Short Exercises...Ch. 21 - Prob. S21A.20SECh. 21 - Prob. S21A.21SECh. 21 - Prob. S21A.22SECh. 21 - Prob. S21A.23SECh. 21 - Prob. S21A.24SECh. 21 - Prob. S21A.25SECh. 21 - Prob. S21A.26SECh. 21 - Prob. E21.27ECh. 21 - Prob. E21.28ECh. 21 - Prob. E21.29ECh. 21 - Prob. E21.30ECh. 21 - Prob. E21.31ECh. 21 - Prob. E21.32ECh. 21 - Prob. E21.33ECh. 21 - Prob. E21.34ECh. 21 - Prob. E21.35ECh. 21 - Prob. E21.36ECh. 21 - Prob. E21.37ECh. 21 - Prob. E21.38ECh. 21 - Prob. E21.39ECh. 21 - Prob. E21.40ECh. 21 - Prob. E21.41ECh. 21 - Prob. E21.42ECh. 21 - Prob. E21.43ECh. 21 - Prob. E21.44ECh. 21 - Prob. E21.45ECh. 21 - Prob. E21A.46ECh. 21 - Prob. E21A.47ECh. 21 - Prob. E21A.48ECh. 21 - Prob. E21A.49ECh. 21 - Prob. E21A.50ECh. 21 - Prob. E21A.51ECh. 21 - Prob. E21A.52ECh. 21 - Prob. E21A.53ECh. 21 - Prob. P21.54APGACh. 21 - Prob. P21.55APGACh. 21 - Analyzing CVP relationships Learning Objectives...Ch. 21 - Prob. P21.57APGACh. 21 - Prob. P21.58APGACh. 21 - Prob. P21A.59APGACh. 21 - Prob. P21A.60APGACh. 21 - Prob. P21.61BPGBCh. 21 - Prob. P21.62BPGBCh. 21 - Prob. P21.63BPGBCh. 21 - Prob. P21.64BPGBCh. 21 - Prob. P21.65BPGBCh. 21 - Prob. P21A.66BPGBCh. 21 - Prob. P21A.67BPGBCh. 21 - Using Excel for cost-volume-profit(CVP) analysis...Ch. 21 - Prob. P21.69CPCh. 21 - Comprehensive Problem for Chapters 18- 21 The...Ch. 21 - Comprehensive Problem for Chapters 18- 21 The...Ch. 21 - Comprehensive Problem for Chapters 18- 21 The...Ch. 21 - Comprehensive Problem for Chapters 18- 21 The...Ch. 21 - Comprehensive Problem for Chapters 18- 21 The...Ch. 21 - Prob. 6CPCh. 21 - Prob. 21.1TIATCCh. 21 - Prob. 21.1DCCh. 21 - Prob. 21.1EI
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